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TENNESSEE ECONOMIC DEVELOPMENT GUIDE tned .com tnedg.com

In the Middle of the Action State te initiatives generate investment estment in rural areas

Building Better Communities Locales learn how to capitalize on their strengths

Guten Tag, Chattanooga Volkswagen gears up for U.S. manufacturing anufacturing


contents

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

OVERVIEW

13

BUSINESS ALMANAC

14

BUSINESS CLIMATE

In the Middle of the Action

18

Tennessee’s non-urban communities are getting a helping hand from the state’s Rural Opportunity Initiative.

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26

Expert Feedback

20

A Machine That Keeps on Hum Humming

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EDUCATION

Class Action

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Gov. Phil h l Bredesen’s d administration d h has made education initiatives at every level a top priority for Tennessee.

A Helping Hand for Employers

25

GLOBAL

34

Northern Flavor, Southern Setting

26

Canadian trade and investment play a major role in the state’s economy.

Making the Connection

28

Far East Tennessee

29

HEALTH CARE & BIOSCIENCE

A Healthy Tale of Two Cities 30 Tennessee’s diverse health-care industry is a recognized leader in all things medical. AUTOMOTIVE

Guten Tag, Chattanooga

34

Volkswagen is the latest entrant to Tennessee’s red-hot auto industry. TECHNOLOGY

Point, Click and Grow

36

The state will get a $2.4 billion economic boost if more residents begin using broadband Internet technology, a report says.

36 TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Broadband Creates pp Rural Opportunity

39

On the Cover PHOTO BY JEFFREY S. OTTO Volkswagen will buil build its new U.S. plant in Chattanooga.

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ACTION! ADVENTURE! “IT KEPT ME ON THE EDGE OF MY LAPTOP!”

“TENNESSEE LIKE IT’S NEVER BEEN SEEN BEFORE!”

Images of Tennessee

THE MOVIE

STARTS TODAY!

WORLD WIDE WEB SHOWTIMES VALID MONDAY-SUNDAY 24/7

SPECIAL ENGAGEMENT ANY RESEMBLANCE TO PLACES, EVENTS OR QUALITY OF LIFE IN TENNESSEE IS PURELY INTENTIONAL!

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contents ENERGY

44

No Fuelish No Notions

40

Tennessee is at the forefront fo in research on alternative energy and conservation.

Energy Into Action Actio

43

MANUFACTURING

Powering Up in Chattanooga Chatta

40

44

French energy en company Alstom has selected iits Chattanooga operations for a new manufacturing facility.

Chemical Attraction Chemic

47

TOURISM

Highlighting the ‘Hidden Gems’

48

Tennessee offers spectacular visitor attractions from one end of the state to the other.

Street Cred

51

COMMUNITY DEVELOPMENT

Building Better Communities

52

Economic development specialists help capitalize on their strengths. rural locales capitaliz

48

Recognition for a Job Well Done

54

Strength in Numb Numbers

55

BROADCASTING

Channeling Tennessee Te

56

Millions dial in to popular networks that make their home in the state. AGRICULTURE

Homegrown Goodness

60

Eat what the locals eat with the help of Pick Tennessee Products.

ECONOMIC PROFILE

56 TENNESSEE ECONOMIC DEVELOPMENT GUIDE

63

This magazine is printed entirely or in part on recycled paper containing 10% post-consumer waste.

PLEASE RECYCLE THIS MAGAZINE

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contents LIFESTYLE | WORKSTYLE | DIGGING DEEPER | VIDEO | LINK TO US | ADVERTISE | CONTACT US | SITE MAP

TENNESSEE

ECONOMIC DEVELOPMENT GUIDE

CONNECTIONS

An online resource at TNEDG.com

• Three-star community VIRTUAL MAGAZINE >>

TENNESSEE NEESSE ECONOMIC DEVELOPMENT VEL EELO L PMEENT N GUI GUIDE UUIID tnedg.com tn n ed d g.com

In th In tthe he Middle he Mid M Midd idd idd of th th he Ac Act Acti Actio A ctio ct cti c tio ttiiio on of the Action State initiativ initiatives ative tive ives ves es s ge g gene generate nerrate ne ra ate investment in rural areas ru rur ura ral all are a ar eas ea eas

Building Better Bette tte er Communities es Locales learn how to capitalize on their strengths

• Location between I-65 and I-40 • A safe, economical place to live and conduct business • SACS-accredited school system • Available workforce

Lifestyle A showcase for what drives Tennessee’s high quality of life

Guten Tag, Chattanooga Volkswagen gears up for U.S. manufacturing

Read Tennessee Economic Development Guide on your computer, zoom in on the articles and link to advertiser Web sites. NEWS AND NOTES >>

Get the Inside Scoop on the latest developments in Tennessee from our editors and business insiders

• Tennessee Technology Center (classroom and on-site training) • MTIDA-certified “Deal Ready” developed industrial park • Available industrial building • Rail service available • Competitive utility rates • Rural environment

Workstyle A spotlight on innovative companies that call Tennessee home

SUCCESS BREEDS SUCCESS >>

Meet the people setting the pace for Tennessee business DIG DEEPER >>

Log into the community with links to local Web sites and resources to give you the big picture of Tennessee DATA CENTRAL >>

A by-the-numbers look at doing business and living in Tennessee GUIDE TO SERVICES >>

See the Video Our award-winning photographers give you a virtual peek inside Tennessee

Links to a cross section of goods and services in Tennessee

GO ONLINE

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City of Hohenwald 118 West Linden Avenue Hohenwald, TN 38462 (931) 796-2231 Chamber of Commerce 106 North Court Street (931) 796-4084 Hohenwald-Lewis County EDC (931) 796-6012

www.lewisedc.org

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TENNESSEE

ECONOMIC DEVELOPMENT GUIDE 2008-09 EDITION, VOLUME 17

CU S TO M M AG A Z INE M ED I A

MANAGING EDITOR BILL McMEEKIN COPY EDITOR JOYCE CARUTHERS ASSOCIATE EDITORS LISA BATTLES, SARAH B. GILLIAM STAFF WRITERS CAROL COWAN, KEVIN LITWIN CONTRIBUTING WRITERS PAIGE CLANCY, SHARON H. FITZGERALD, MICHAELA JACKSON, BILL LEWIS, JOE MORRIS, JESSICA MOZO EDITORIAL ASSISTANT JESSY YANCEY DATABASE PROJECT MANAGER YANCEY TURTURICE DATA MANAGER RANETTA SMITH SENIOR INTEGRATED MEDIA MANAGER ELIZABETH WEST SALES SUPPORT MANAGER SARA SARTIN SENIOR PHOTOGRAPHER BRIAN McCORD STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT, ANTONY BOSHIER, IAN CURCIO, KYLE KEENER, JESSE KNISH PHOTOGRAPHY ASSISTANT ANNE WHITLOW CREATIVE DIRECTOR KEITH HARRIS WEB DESIGN DIRECTOR SHAWN DANIEL PRODUCTION DIRECTOR NATASHA LORENS ASSISTANT PRODUCTION DIRECTOR CHRISTINA CARDEN PRE-PRESS COORDINATOR HAZEL RISNER PRODUCTION PROJECT MGRS. MELISSA HOOVER, JILL WYATT SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER, KRIS SEXTON, VIKKI WILLIAMS LEAD DESIGNER JESSICA BRAGONIER GRAPHIC DESIGN ERICA HINES, ALISON HUNTER, JANINE MARYLAND, AMY NELSON, MARCUS SNYDER, CANDICE SWEET WEB PROJECT MANAGERS ANDY HARTLEY, YAMEL RUIZ WEB DESIGN RYAN DUNLAP, CARL SCHULZ COLOR IMAGING TECHNICIAN TWILA ALLEN AD TRAFFIC MARCIA BANASIK, SARAH MILLER, PATRICIA MOISAN, RAVEN PETTY CHAIRMAN GREG THURMAN PRESIDENT/PUBLISHER BOB SCHWARTZMAN EXECUTIVE VICE PRESIDENT RAY LANGEN SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER SR. V.P./SALES CARLA H. THURMAN SR. V.P./OPERATIONS CASEY E. HESTER V.P./SALES HERB HARPER V.P./SALES TODD POTTER V.P./VISUAL CONTENT MARK FORESTER V.P./TRAVEL PUBLISHING SYBIL STEWART V.P/EDITORIAL DIRECTOR TEREE CARUTHERS MANAGING EDITOR/BUSINESS MAURICE FLIESS MANAGING EDITOR/COMMUNITY KIM MADLOM MANAGING EDITOR/TRAVEL SUSAN CHAPPELL PHOTOGRAPHY DIRECTOR JEFFREY S. OTTO CONTROLLER CHRIS DUDLEY ACCOUNTING MORIAH DOMBY, RICHIE FITZPATRICK, DIANA GUZMAN, MARIA MCFARLAND, LISA OWENS RECRUITING/TRAINING DIRECTOR SUZY WALDRIP COMMUNITY PROMOTION DIRECTOR CINDY COMPERRY DISTRIBUTION DIRECTOR GARY SMITH IT SYSTEMS DIRECTOR MATT LOCKE IT SERVICE TECHNICIAN RYAN SWEENEY HUMAN RESOURCES MANAGER PEGGY BLAKE SALES/MARKETING COORDINATOR RACHEL MATHEIS SALES COORDINATOR JENNIFER ALEXANDER EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN OFFICE MANAGER SHELLY GRISSOM RECEPTIONIST LINDA BISHOP

Tennesse Economic Development Guide is published annually by Journal Communications Inc. and is distributed through the Tennessee Economic and Community Development. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at info@jnlcom.com.

FOR MORE INFORMATION, CONTACT: Tennessee Economic and Community Development 312 Rosa L. Parks Blvd., 11th Floor • Nashville, TN 37243-1102 Phone: (615) 741-1888 • Fax: (615) 741-7306 www.tennessee.gov/ecd VISIT TENNESSEE ECONOMIC DEVELOPMENT GUIDE ONLINE AT TNEDG.COM ©Copyright 2008 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent. Member Member

Magazine Publishers of America Custom Publishing Council

Member Tennessee Economic and Community Development

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Excellence Begins on

Tellico Lake. Discover what the boating industry already knows. Companies like Sea Ray, MasterCraft, Yamaha, Cobalt Yachts and Christensen Shipyards, Ltd. have all taken advantage of the quality developments and the natural beauty that Tellico offers. Tellico has 2,000 reasonably priced acres for consideration by companies seeking a strategic and attractive location for corporate offices, manufacturing and distribution facilities. Visit www.tellico.com or contact Ron Hammontree to find out how Tellico can provide a prestigious location for your new manufacturing or distribution facilities. The site is located on US Hwy. 72, two miles from the recently four-laned US Hwy. 411. We are 20 minutes from I-75 and less than 30 minutes from I-40. The site is served by CSX Transportation.

www.tellico.com Tellico Reservoir Development Agency Ron Hammontree 59 Excellence Way | Vonore, TN 37885 (865) 673-8599 | Fax: (423) 884-6869

Premier industrial sites in the greater knoxville, tn community.


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overview

MAKING TENNESSEE EVEN STRONGER ‘A Major Player for a Long Time to Come’ As the business cycle rises and falls, new technologies emerge and economies reinvent themselves. Those changes present states with unique opportunities that can lay the foundations of future economic growth, spawning new industries, new jobs and new chances to create wealth.

TODD BENNETT

Since taking office in January 2003, Gov. Phil Bredesen’s strategic focus of creating “higher skilled, better paying jobs” has yielded remarkable results. With leadership from Commissioner Matt Kisber, nearly all of the Tennessee Department of Economic & Community Development’s processes and strategies have been retooled.

Gov. Phil Bredesen launches the Orange Carpet Tour initiative.

The results of that effort can be seen in the more than 141,000 new jobs created since Gov. Bredesen took office and in the more than $21 billion in new business capital invested in the state. Tennessee has seen a resurgence in its skilled workforce, with 38 new corporate headquarters moving to the state in the last five years. In July, Volkswagen Group of America Inc. announced it would build an auto production facility in Chattanooga, a $1 billion investment that will create some 2,000 jobs.

job growth through an effort called the Rural Opportunity Initiative, or ROI. The expanding reach of broadband Internet technology has allowed rural Tennessee companies to reach markets around the world and Tennessee is moving to become a force in global markets. Whether it’s promoting Memphis’ place as the world’s busiest freight airport or helping a rural entrepreneur ship to a customer in Asia or Europe, Tennessee is prepared to help people move forward.

In its annual Governor’s Cup rankings, Site Selection magazine ranked Tennessee’s 2007 performance third among U.S. states. Site Selection also ranked Tennessee No. 1 among U.S. states in its coveted 2008 competitiveness rankings.

Foreign direct investment in Tennessee grew 78 percent in 2007, showing that companies around the world understand the productivity of Tennessee workers. And Gov. Bredesen’s collaboration with the University of Tennessee and Oak Ridge National Laboratory is positioning Tennessee to become a leader in research on alternative fuels.

“Success breeds further success, and we believe Tennessee has what it takes to attract business development that lasts,” Kisber says. “We’re working to attract jobs that raise Tennesseans’ living standard and are sustainable as well. We’re going to be a major player in economic development for a long time to come.”

Changing economies present unique challenges, but they are challenges Tennessee is prepared to meet. The future looks bright.

Gov. Bredesen has been widely praised for his efforts to ensure that Tennessee’s rural residents share in economic opportunity equally with the state’s urban and suburban residents. In 2008, the state launched a series of programs aimed at rural

SEE VIDEO ONLINE | Take a virtual tour of Tennessee at tnedg.com, courtesy of our award-winning photographers.

Clarksville 75

Nashville

81

40

Knoxville

40

Murfreesboro

40

Tri-Cities

40 40

Jackson 24

40

Memphis

65

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

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Chattanooga

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SECURING OUR ENERGY EnerNex Corp. is involved in the war on terrorism. The Knoxville company is one of five in the nation that has been awarded funding from the U.S. Department of Energy to secure the country’s electric grid and energy infrastructure. EnerNex (www.enernex.com) is developing technologically advanced controls and cyber-security devices for the electric power industry. The company is also offering engineering and consulting services to the department, along with software upgrades and solutions.

LET’S TAKE THE JET And the winner is: Fayette County Airport. The Tennessee Department of Transportation has recognized the Fayette County airfield as the most improved in the entire state. The airport was recognized in October 2007 for upgrades over the past year that included a $600,000 state grant to build 20 new T-hangars – all of which have already been leased. Fayette County Airport has a 5,000-foot runway that can handle private planes and small jets. The airport is located just outside the city of Somerville.

CLASSROOM STARS Students: Go to the head of the class. Tennessee Scholars is a program started in 2002 that rewards students for taking more rigorous courses in high school, including classes that are technology based. The program also encourages students to take classes that would give them some type of work experience before they graduate. The rewards to students who achieve good grades in the program include scholarships along with internships at prestigious companies. For more on the program, go to www.tennesseescholars.org.

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business almanac

BOTTL BOTTLED UP EXCITE EXCITEMENT The Cleveland Clevelan Coca-Cola Bottling Co. plant on an appropriately named street is located o in Bradley County – Refreshment Lane. the plant celebrated its 100th In 2007, th existence by announcing that it year of ex is underg undergoing a $13 million expansion add 128,000 square feet to the that will a and create nine jobs, upping facility an the workforce to 340 employees. workf The curre current plant produces 35 million cases of beverages each year and b serves mo more than 4,500 customers Tennessee counties. The in 13 Tenne Cleveland facility’s annual payroll is more tthan $12 million.

BANDING TOGETHER

3-D DOWNTOWN

Here is an innovative idea for economic development.

Welcome to McMinnville – in 3-D.

Innovation Valley Inc. is a group of six economic development agencies that are striving for a common goal – bringing more business to East Tennessee. The agencies involved are the Blount County Chamber of Commerce, Knoxville Area Chamber of Commerce, Loudon County Economic Development Agency, Oak Ridge Economic Partnership, Roane Alliance and the Tellico Reservoir Development Agency.

Computer search engine giant Google has been working on a 3-D model of all the buildings that currently exist in downtown McMinnville. A preview of the interesting Web site can be seen at www.mainstreetmcminnville.org.

The mission of Innovation Valley Inc. is to attract new jobs, recruit new companies, help with existing business expansions and investment, and promote the region’s highly educated and skilled workforce. To learn more about Innovation Valley Inc., go to www.knoxvilleoakridge.com.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

The project involves 38 volunteers who contacted Google about the concept. Amenities such as trees and sidewalks will be added later to the McMinnville site, with the project scheduled for completion in late 2008. Plans are for Google to eventually have this imagery set up for all of Warren County. PHOTO COURTESY OF SHELLY GRISSOM

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JOB SEEKERS

Dayton (423) 570-1107

Chattanooga (423) 894-5354

Dunlap (423) 949-6648

Cleveland (423) 478-0322

Kimball (423) 837-9103

www.secareercenter.org

Where people and jobs connect WE BRING CAREER RESOURCES TO

Athens (423) 745-2028

&

EMPLOYERS

JOB LISTINGS

POST JOB OPENINGS

JOB SEARCH TOOLS

EMPLOYEE RECRUITMENT

SKILLS UPGRADE ASSISTANCE

HIRING INCENTIVES

SKILLS CREDENTIALS

JOB PROFILING/ASSESSMENTS

This project is funded under an agreement with the Tennessee Department of Labor and Workforce Development. Equal Opportunity Employer/Program. Auxiliary aids and services are available upon request to individuals with disabilities. TDD/TTY TN Relay 711.


business almanac

AK KING OF A ROAD Here is a compliment paved with good intentions. nation’s truckers have selected Interstate 40 in Tennessee as The nat best road in the United States. In fact, the folks behind the wheel the bes of the big b rigs have rated the road No. 1 for the past two years. Overdrive Magazine conducted a poll of more than 700 truckers who Overdr votes about the nation’s highways. The magazine also ranked cast vo Tennessee’s overall roadways as the third best in the country, and Tennes truckers rated Tennessee motorists third in the nation for best driving. trucker

IN GOOD STANDING

NEGATIVE $8.14

No. 5 out of 50 is really good.

He recently had a solar electric generating system installed in his office building, and his electric bill for the first month was a negative $8.14. That meant the system provided more electricity than was needed for that November-December time period.

Tennessee has the fifth-best economy in the United States, according to a survey published by the American Legislative Exchange Council. The council bills itself as an organization of nonpartisan state legislators who rank the economies of individual states based on 16 categories.

Nashville attorney David Lyons knows how to save energy.

Lyons put in the system as part of a new Tennessee Clean Energy Technology Grant Program, sponsored by the Tennessee Department of Economic & Community Development. Applicants can get up to a 40 percent grant toward the installation cost for a clean-energy system. For more, go to www.state.tn.us/ecd/energy.

The group cited Tennessee’s marginal personal income tax, its right-to-work status and a low state minimum wage. The ranking also noted that it takes a worker in Kentucky 13 months to make the income that a Tennessee resident earns in 12 months.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

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P H OTO S B Y TO D D B E N N E T T

business climate

State initiative brings rural areas front and center for investment, jobs

R

olling hills and sweeping vistas are hallmarks of the Tennessee countryside, and they’re also prime spots for business expansion and investment opportunities. Tennessee’s non-urban communities are getting a helping hand from Gov. Phil Bredesen’s Rural Opportunity Initiative, a three-pronged approach to local economic development. Among the initiatives: • “Orange Carpet Tours” that prepare local officials for corporate site-selection visits. • A series of tax incentives for companies that invest in the state’s rural areas. • The Rural Opportunity Fund, a new line of capital for businesses in the state’s non-urban areas. “The incentives and other programs that make up the Rural Opportunity Initiative are in their early months, but there seems to be a significant amount of interest from both

communities and companies,” says Matt Kisber, commissioner of the Tennessee Department of Economic & Community Development. “I suspect that over the course of the next year, we’ll see a number of successes across the state.” Those successes include: • ThyssenKrupp Waupaca breaking ground on a $162 million expansion to the company’s Etowah operation in Southeast Tennessee, doubling the size of the current facility and adding more than 100 jobs. • Fluid Routing Solutions adding 169 jobs as it consolidates its U.S. operations and expands its plant in Lexington in West Tennessee. • Aisin Automotive Casting Tennessee investing $67 million to double the size of its plant in Clinton in East Tennessee and add 160 jobs. “We will have more than 650 employees once the expansion is at full capacity,” says Junichi Komada, executive vice

ThyssenKrupp Waupaca Inc. is expanding its facility in Etowah in McMinn County, doubling its size and adding at least 100 jobs.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

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business climate

president for Aisin, which makes functional engine were attracted to. From the local level on up, everyone knows components in Clinton for the auto market. how to attract and win businesses,” says Fischer. “State and local officials have been extremely helpful in Auto parts manufacturer Arvin Sango looked at 20 locales finding and obtaining excellent incentives for locating in before deciding to build a $10 million plant in Henderson Tennessee and for the current expansion plan,” Komada says. that will make exhaust systems for the new Toyota plant in Vifan USA Inc. has Mississippi. begun construction on “The city and state a $72 million facility had a lot to offer as in Morristown in East far as incentives, but Tennessee. The producer Tennessee also has of polypropylene sheet great infrastructure as film began operations far as roads, so we’ve in Morristown in 1998 got a straight shot and will add 120,000 to the Toyota plant,” square feet and a second says Dan Baughman, line of production to its executive vice president operations, for a net gain and secretary/treasurer. of 55 jobs. These successes and J.J. FISCHER. The combination of diversity of companies FISCHER TOOL & DIE state incentives and bode well for the Rural available programs Opportunity Initiative, from the Tennessee Valley Authority also landed Fischer Tool which Kisber says will be constantly fine-tuned. & Die, which is building a $45 million plant in Tullahoma “What has led Tennessee to the success that we have in southern Middle Tennessee. The maker of die-cast tooling enjoyed over the last few years is that we have been extremely solutions went through an “exhaustive” site-selection process, responsive to the needs of our customers,” he says. “We will and Tennessee brought much more to the table than its continue to maintain, first and foremost, that focus on competitors, says J.J. Fischer, chief financial officer. providing value to our communities and our companies.” “There were a lot of communities in Tennessee that we – Joe Morris

“There were a lot of communities in Tennessee that we were attracted to. From the local level on up, everyone knows how to attract and win businesses.”

Expert Feedback ORANGE CARPET TOUR PROGRAM HELPS ATTRACT NEW INVESTMENT The Tennessee Department of Economic & Community Development is offering local communities a way to sharpen their recruiting skills. The Orange Carpet Tour program is designed to prep communities on how they best showcase themselves to major companies looking at expansion or relocation. The program is a part of Gov. Phil Bredesen’s Rural Opportunity Initiative that aims to bolster jobs and investment in rural communities. The partnership with Chicago-based business advisory firm Plante & Moran involves a two-day visit to a community that simulates a full-scale, detailed presentation

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to selection consultants. Upon conclusion, consultants provide direct feedback, including detailed information on strengths and weaknesses of the area, especially those elements of most interest to relocating companies. “We’ve created a scorecard that has all the elements selection consultants look at, and we can weigh the scores differently depending on what type of business we’re supposed to be,” says Adam Rujan, a partner with Plante & Moran. “They want us to come out and tell them, without candy-coating anything, how they look,” he says. State economic development officials then work with the communities on improvement

strategies and help them promote their strengths. “We expect a lot of participation as the program rolls out,” Rujan says. – Joe Morris

Gov. Phil Bredesen has made rural investment initiatives a top priority.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


A Machine That Keeps on

Humming Tennessee continues to be magnet for corporate relocations, expansions

S

ome point to the location, others to incentives, still others to a skilled workforce. But whatever the reasons, more companies are finding Tennessee a good place to move their business and an even better place to expand. Among the most recent expansion successes: • Telecom giant Verizon Wireless is building a $54 million regional headquarters in Franklin and adding 600 to 700 new employees. • American Medical Depot is locating its $12.5 million regional headquarters in Millington. • Colgate-Palmolive Co. has opened a $50 million manufacturing plant in Morristown in West Tennessee. • Eastman Chemical Co. will invest $1.3 billion over the next five years at its Kingsport complex in Northeast Tennessee. “We’re making it easy for companies to come in, invest, see that the state and local communities support them, and that we have the infrastructure and workforce they need to be competitive,” says Matt Kisber, commissioner of the Tennessee Department of Economic & Community Development. Mike Incorvaia is president of Novita Technologies, a maker of lighting and sensing technology used in the auto

industry, including its patented SideEyes® Object Detection technology. The company had been based in Springfield, but Incorvaia wanted to relocate when he and other managers bought out previous ownership. “There’s also a lot of talent in this area, so we assumed we’d have a lot of interest in us,” he says. “The workforce here has been very good to us so far.” Verizon Wireless’ 180,000-square-foot regional headquarters will open in fall 2008. The company already has a significant presence in Middle Tennessee, operating customer service centers in Nashville and Murfreesboro.Strong efforts by local and state officials, including the governor, sealed the deal, says Alan Willett, director of customer financial services. “We weren’t approaching our decision from the perspective of who was giving us the most attractive incentives package, but what they did made us feel even better about our decision,” he says. These successes and the diversity of companies bode well for Tennessee over the long term, notes Kisber. “The combination of new companies and expansions by existing industries led to record capital investment and job creation [in 2007],” he says. – Joe Morris

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Novita Technologies in Hendersonville produces parts for the automotive electronics industry. PHOTOS BY TODD BENNETT

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education

Class

Action Tennessee puts quality education initiatives at top of its agenda

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ov. Phil Bredesen’s administration has made on several fronts, including expanding pre-kindergarten education initiatives at every level – from pre- programs, encouraging new reading initiatives and increasing kindergarten to elementary and high schools to teacher pay. In 2005, the state saw its average teacher pay colleges and lifelong learning – a Job 1 priority for Tennessee. exceed the Southeast U.S. average. For the second consecutive year, the governor has proposed The quality of a state’s educational systems is a major devoting the largest portion of the state’s budget to pre- consideration for company executives and site-selection kindergarten, K-12 and consultants making multihigher education spending, million-dollar decisions, more than $8.4 billion, or 30 says Matt Kisber, Tennessee percent of the state’s $27.9 Department of Economic & billion budget for 2008-09. Community Development “I believe that we have an commissioner. obligation to provide every “The most important Tennessean with access to a aspect to a site-selection quality education that will decision is knowing that lead to a well-paying job and, educational system is ultimately, a high quality producing the kind of of life,” the governor says. skilled labor that that The commitment is company needs, not just GOV. PHIL BREDESEN paying dividends. The state today, but in 10 or 20 has moved up to No. 16 in years, over the life of that influential chronicle Education Week’s overall state rankings, investment,” Kisber says. which measured such factors as achievement, standards, An 80-page report released in December 2007 found that teacher quality and finance. In the Education Alignment employers looking for high school graduates to fill entry-level Policies category, which includes early learning, school jobs want candidates who possess not only basic math and readiness, college readiness and work readiness assessments, verbal communication skills, but also problem-solving and Tennessee ranked No. 1 among the 50 states. teamwork abilities. The administration has launched a major education push The report by the Tennessee Diploma Project, sponsored

“We as a state absolutely must recognize the importance of a quality, long-term education to success, for individuals and for us all collectively.”

Danny Lee works with students in an electronics class at the Humphreys County Center for Higher Education in Waverly, Tenn.

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TODD BENNETT

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education

More Insight ON THE FASTRACK Tennessee’s FastTrack Job Training Assistance Program is available to new and expanding industries and begins with a company developing a training plan including the number of people to be hired, types of skills required and types of training needed. The plan is developed in conjunction with the state FastTrack staff and is designed to be tailored and flexible. Companies track costs associated with implementation of the training program, then submit them to the state for reimbursement.

Business executive Pitt Hyde of Memphis says every facet of society benefits from a better-educated populace. PHOTOS BY TODD BENNETT

Training may include: Classroom instruction On-the-job training Vendor training from a manufacturer for a piece of industrial equipment System support for certain types of plantwide or company-wide applications Development and coordination of instructional materials and training program Travel related to training More information about FJTAP can be obtained by calling (615) 741-6201

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by the Tennessee Business Roundtable and the Hyde Family Foundations, resulted from statewide surveys of top business decision-makers as well as six regional roundtable meetings that included Gov. Bredesen, state officials and executives from across Tennessee. AutoZone founder and philanthropist Pitt Hyde, who participated in the roundtables, said continuous educational improvement is critical to closing income gaps, turning out productive members of society and attracting investment. “Everyone benefits from a better-educated populace. It’s critical today and it will be more critical in the future,” says Hyde, who is now president of investment firm Pittco in Memphis and oversees the Hyde Family Foundations, which are involved in several education initiatives. Hyde credited Gov. Bredesen and the administration for incorporating findings from the report as they re-write education standards for the state. The governor’s 2008-09 budget also includes $29.3 million for an economic development jobs package that would, in part, fund training for companies looking to relocate or expand in Tennessee. “We as a state absolutely must recognize the

importance of a quality, long-term education to success, for individuals and for us all collectively,” the governor says. One example of that commitment was seen in Humphreys County, where a 10,000-square-foot expansion of the Humphreys County Center for Higher Education was funded in part by a $1.15 million grant from the TDECD’s FastTrack Infrastructure Development Program and a $400,000 matching contribution from Humphreys County. The expansion will house classrooms and lab space for a new associate’s degree in industrial process control technology. The center is managed by Nashville State Community College, which began working with Humphreys County and industry officials several years ago to develop a program to meet the workforce needs of chemical processing plants in the region and attract new industry. The center’s technology training is important to industry growth in the region, says Jennie Stribling, center director, and the partnership between Nashville State and the county is “a wonderful example of a local community working to develop their own higher education options.” – Bill McMeekin

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Helping Hand for

Employers

Career centers, training grants keep Tennessee workforce on leading edge

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or one West Tennessee manufacturer, state-administered training grants have helped enhance employees’ skills and educate them on topics from lean manufacturing to ergonomics to safety. “Our facility benefits tremendously by fostering an atmosphere to reduce cost in order to remain competitive in the marketplace,” says Anita Allen, environmental, health and safety manager for fireplace manufacturer Lennox Hearth Products in Union City. The company is just one of many in Tennessee to benefit from state services. Tennessee’s Workforce Development Board appropriates $2 million to $3 million annually for incumbent worker training, says Susan Cowden, administrator for workforce development in the Tennessee Department of Labor & Workforce Development. In just one year, these training projects helped 142 companies serving more than 15,000 workers. “Our mission is to bring together job seekers and employers in a way that provides for economic growth in Tennessee,” Cowden says. “For employers, we provide screening, placement and job-

training grants that provide companies cost savings and job growth to keep them viable in Tennessee.” The state also operates a network of career centers divided into 13 local workforce investment areas, which are administered by local boards. The centers provide employers a range of services, including customized training, employee referrals and job applicant prescreening, says Don Ingram, employment security administrator in the Department of Labor & Workforce Development. In January 2008, Tennessee also invested $1.5 million in a statewide career readiness certificates program using ACT WorkKeys assessments of job seekers’ reading and math performance. In Kingsport, Eastman Chemical Co.’s Tennessee operations use WorkKeys tests as pre-employment screening tools for all of its operations, maintenance and laboratory jobs. Karen Rowell, director of operations support at Eastman, says the tests are reliable predictors of a worker’s ability to learn a job. “All of these services represent a huge value to the employer and reduce costs,” says Ingram. – Paige Clancy

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Don Ingram, state employment security administrator, stands in a career center in Nashville.

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global

Northern Flavor

Southern Setting

Canadian trade, investment play major role in state’s economy

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all it “The Southern Strategy.” Several states in the Southeast have joined the Council of American States in Canada, a successful recruiting organization, to lure Canadian companies into the region. And with several major players already on the ground, Tennessee is leading the hunt. “People here are more and more aware of the opportunities in Tennessee, and that is being driven by the state’s location right in the center of the automotive corridor,” says Bob Bathgate, Canadian director for the Tennessee Department of Economic & Community Development. Bathgate also credits the state’s presence via his office in Toronto as a key factor in Canadian industries’ ongoing interest. Tennessee is home to 71 Canadianowned companies that employ more

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than 9,300 and have invested $1.4 billion in the state. Canadian-owned companies in the state run the gamut from auto parts maker Eagle Bend Manufacturing Inc., with 630 employees in Clinton, to call center operator Sitel Worldwide Corp., with 200 employees in Oak Ridge, to perfume and cosmetics maker KIK Custom Products, with 250 employees in Memphis. Printing giant Quebecor World has multiple operations in Tennessee employing hundreds. Of the 205 foreign destinations to which Tennessee companies exported in 2007, Canada was by far the largest market. Tennessee shipped $6.7 billion worth of goods to Canada in 2007, 31 percent of its export totals. Canadian companies are finding the state not only a good place to do business, but also to grow their U.S. presence.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


Canadian National Railway Co. has undertaken a $100 million upgrade of its Johnston Yard in Memphis. PHOTO COURTESY OF CN Left: Robert Bathgate, who leads Tennessee’s Canada office in Toronto, says the state’s location, business climate and incentives are attracting investment from Canadian companies.

Canadian-owned U.S. Fence Inc., which operates a manufacturing facility in Hawkins County in Northeast Tennessee, employs around 600 and is working on an expansion that will greatly increase that number over the next five years. Canadian National Railway Co. is finalizing a $100 million upgrade to its Johnston Yard in Memphis. The company views its Intermodal Gateway Memphis Terminal and Frank C. Pidgeon Industrial Park operation as a central location for shipping and receiving in this country, and the expansion will connect its planned terminal in British Columbia to markets in Mexico and Latin America. “We have taken an outdated yard operation and redesigned and reconfigured it for more fluid operations

now and for future growth,” said Jim Kvedaras, a CN spokesman. The City of Memphis and the state pitched in on utility relocation and roadway-rerouting issues, measures that helped the company expand the scope of the project. “Memphis is a central location for our operations,” Kvedaras says. “We’ve always had great cooperation with the port operations in Memphis, and the state was very helpful with several aspects of this project.” Being able to tout this kind of largescale development makes Bathgate’s job easier, he says. “I offer to introduce new clients to those who have been in Tennessee for a number of years, and the companies there are always happy to meet with them,” he says. “The state is in a great

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

location, has a good business climate and offers several key incentives. And we keep in touch with our companies down there – we don’t just go to the ribbon cutting and forget them.” – Joe Morris

Fact Check TENNESSEE IN CANADA

BOB BATHGATE Canadian representative for the Tennessee Department of Economic & Community Development 650 Parkhill Road West PH3 Peterborough, Ontario K3J 6N6 Phone: (888) 390-2751 E-mail: rbathgate@cogeco.net

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global

Li Weaver works in China promoting Tennessee as an automotive manufacturing base, health-care capital and logistics center.

Making the Connection OFFICE WORKS TO PROMOTE VOLUNTEER STATE IN CHINA

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s president of JC Business Group, Li Weaver operated a successful international consulting firm in Franklin, Tenn., outside of Nashville. When she relocated her firm to Beijing, she took on the duties of chief representative for the Tennessee China Development Center and now works to spread the news about economic development opportunities between the two countries. It’s a job with multiple challenges, but one she says holds unlimited potential.

Q

What companies or business segments is the China office speaking to about opening up an operation or presence in Tennessee?

A

We are focusing on the Chinese automotive industry, heavy equipment companies, medical device manufacturers, telecommunication firms and Chinese companies that have existing businesses in the U.S. or may need to start an operation soon.

Q

What advantages does Tennessee have, compared to other states, for companies in China that are looking to establish or expand an operation in the United States?

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A

We are promoting Tennessee as an automotive manufacturing base, health-care capital of the United States and North American logistics and distribution center. The other advantages include lower labor cost, favorable state tax and incentive programs, and great education and cultural elements.

Q

How important is Tennessee’s presence in China for the state to be a successful competitor for business in China’s rapidly expanding economy?

A

Currently, about 35 U.S. states and cities have offices in China. Most of the offices are focusing on attracting Chinese investments. Many other countries around the world have set up offices to compete for business from China. Until recently, Tennessee was relatively unknown within the Chinese government and business communities. Our presence in China has helped to promote Tennessee as an important state and major investment destination in the U.S. The office also serves as a bridge between Tennessee and China in building government and business relations, providing real-time interface and updated information we need to access industries and government agencies. – Joe Morris

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Far East

Tennessee State secures Japanese consulate, opens China trade office in Beijing

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ennessee’s ties to the Asian economy run in both directions. The state has opened the Tennessee China Development Center in Beijing while drawing a multi-state regional Consulate-General of Japan to Nashville from New Orleans. With imports from Tennessee totaling $1.1 billion in 2007, China ranks No. 3 among the state’s trading partners. Japan ranks No. 5, with the value of imports from Tennessee totaling $817 million. Nearly 700 foreign companies employ some 112,000 Tennesseans. More than a third work for 165 Japanese-owned companies, which have invested more than $11.5 billion in the state and employ 41,000. The relocation of the consulate to Nashville is one more solid indicator that “for global economic activity in the Southeast, and for Japanese investment in particular, Tennessee is at the center of where those discussions and those investments are taking place,” says Matt Kisber, Tennessee Department of Economic & Community Development commissioner. Lori Odom, state director of Asian investment, credits Nashville investment banker Ed Nelson, who served as an honorary consul general for more than 15 years, with promoting Tennessee while the Japanese government was seeking a new location. The office, which opened in January 2008, covers Kentucky, Tennessee, Louisiana, Arkansas and Mississippi. It will promote cultural exchanges, serve Japanese citizens and businesses and

assist Americans in need of visas. Tennessee will host the 34th annual joint meeting of the Japan-Southeast U.S. Association and Southeast U.S.Japan Association in October 2010 in Nashville. The associations are made up of leaders in business and government from Japan and eight Southeast states including Tennessee. The organization was created in 1975 to promote trade, investment, understanding and friendship between Japan and the organization’s member states. Tennessee’s trade with China has grown 1,100 percent over the last five years, the most rapid growth among the states. In October 2007, Gov. Phil Bredesen opened the Tennessee China Devel-

opment Center in Beijing. At the same time, the state began working with the Chinese Foreign Loan Office for an exchange of health-care leaders to improve rural health-care delivery in both countries. That visit yielded other positive results. Knoxville-based Phenotype Screening signed an agreement to sell its equipment to the Chinese Institute of Botany in Beijing. Phenotype makes a small X-ray device used to analyze plant root structures. Opening the office, says Kisber, “can lay the foundation for what (Gov. Bredesen) and I believe will be decades of bilateral economic activity taking place between Tennessee and China.” – Joe Morris

Gov. Phil Bredesen and Li Weaver attend the Tennessee China Development Center’s opening in Beijing. Trade with China is up 1,100 percent since 2003.

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A

Healthy Tale

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health care & bioscience

of Two Cities Memphis and Nashville nurture research, treatment, business synergy

Scorecard WHAT THE DOCTOR ORDERED

$2 billion

Value of medical products exports from Tennessee in 2007, nearly double the value from 2004

$250 million Value of Tennessee’s sales to 56 foreign countries of orthopaedic parts and accessories, No. 1 in the nation

$210 million Value of exports of electrodiagnostic equipment, a 20-fold increase since 2001

$165 million Value of Tennessee’s exports of artificial joints and parts, double the figure from 2004

Source: Business and Economic Research Center, Middle Tennessee State University

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ith life-saving surgery, groundbreaking research, mind-bending technology and risk-taking entrepreneurship, Tennessee’s diverse healthcare industry is a recognized leader in all things medical. When it comes to the state’s two largest cities, Memphis and Nashville, the reputation is global. “There are three things that are needed to make a healthcare company successful – venture capital, great ideas and management expertise. Nashville has each in abundance,” says Dr. Harry Jacobson, vice chancellor for health affairs at Vanderbilt University Medical Center, ranked as one of the nation’s top 10 major teaching hospitals for 2007. The health-management talent that was spawned from investor-owned hospital pioneer HCA Inc., the biomedical research prowess at Vanderbilt and the corporate, legal and financial expertise that has been developed in Nashville make the area “an ideal incubator for new ideas,” says Jacobson. Jacobson credits the Nashville Health Care Council, an Dr. Harry Jacobson is vice chancellor of the Vanderbilt University Medical Center in Nashville. PHOTO BY TODD BENNETT

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health care & bioscience

More Insight RX FOR GROWTH

TO D D B E N N E T T

Memphis Bioworks in 2007 created Innova, an early-stage investment fund to marry research and intellectual property with funding and business management expertise.

Dr. Steven Bares is president and executive director of the Memphis Bioworks Foundation.

industry association founded in 1995, with boosting the city’s health credentials. “The council has been responsible for systematically bringing together leaders of health-care businesses and has catalyzed the relationships between companies by consistently highlighting challenges and opportunities in the market,” says Jacobson, a past council chairman. Jim Lackey, chairman and CEO of Nashvillebased Passport Health Communications Inc., says one reason his health-care technology company has thrived is because of its location in “the U.S. health-care capital.” The company employs about 200 people and boasts more than 4,000 hospitals, outpatient centers and physician practices as clients for its suite of administrative and financial tools. Some of Passport’s largest corporate customers “are right down the street,” Lackey says, including hospital companies HCA, Community Health Systems and LifePoint Hospitals Inc. Memphis displays a similar synergy, says Dr. Steven Bares, president and executive director of the Memphis Bioworks Foundation, a nonprofit founded in 2001 to promote bioscience and biotechnology collaboration. He cites Memphis’ core competencies as: • Orthopaedics and medical devices. Smith & Nephew Inc.’s orthopaedic-device business is based in Memphis and employs about 1,800

people. Medtronic Inc.’s spinal and biologics division is headquartered in Memphis, and Wright Medical Technology Inc.’s headquarters are in nearby Arlington. • Medical research and treatment, thanks to the University of Tennessee Health Science Center and St. Jude Children’s Hospital. • Logistics. Near Memphis International Airport are both the corporate home of FedEx and a major distribution hub for UPS. Leigh Anne Downes, director of life science business development for the Memphis Regional Chamber of Commerce, says the logistics benefits are a top selling point for medical device makers. “That is really advantageous for next-day surgeries,” she explains. Some FedEx shipments can go out as late as midnight for next-day delivery, she says. To identify and grow more companies that can take advantage of Memphis’ strengths, Memphis Bioworks in 2007 created Innova, an early-stage investment fund to marry research and intellectual property with funding and business management expertise. “Innova’s goals are to identify technologybased startups that can be formed and created and be the catalyst to create more jobs in the community,” Bares says. – Sharon H. Fitzgerald

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Middle Tennessee is home to more than 300 health-care companies and 250 professional service firms with expertise in the health-care industry. Nashville’s health-care industry generated a total economic impact of more than $18 billion in the Nashville region in 2004. It directly employs 95,000 people and accounts for a total of more than 154,000 jobs. Nashville-based health-care companies accounted for nearly $80 billion in revenue in 2006 and more than 430,000 jobs globally. Nashville health-care start-ups and existing companies have secured more than $5.5 billion in venture capital and private equity funding since 2000. Sources: Nashville Health Care Council and Memphis BioWorks Foundation

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All Cylinders Tennessee’s auto industry shifts into overdrive

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

P H OTO C O U R T E S Y O F G M C O R P

Firing on


automotive

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conic German carmaker Volkswagen is the latest entrant to Tennessee’s thriving automotive industry. VW’s $1 billion investment at a 1,350-acre site in the Enterprise South Industrial Park in Chattanooga is expected to create 2,000 jobs. “Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition,” says Stefan Jacoby, president and CEO of Volkswagen Group of America. VW will build a new sedan targeted at the U.S. market, with initial production expected to be 150,000 vehicles when the plant comes on line in 2011. “I believe Volkswagen chose Tennessee because of our shared values, our commitment to innovation and our strong respect for the environment,” says Gov. Phil Bredesen. Volkswagen will join thriving Nissan, General Motors Corp. and Peterbilt Motors Co. plants, as well as 1,000 or so auto-related companies that supply parts to manufacturers across the country. “The hard work and dedication demonstrated by people at the state and local level to create one of the best business climates in the country is paying off,” says Matt Kisber, Tennessee Department of Economic & Community Development commissioner. The state’s auto business has expanded to includes headquarter operations, such as Nissan North America, which relocated to Tennessee in 2006. Tennessee’s central location within a day’s drive of three-quarters of the nation’s population, productive workforce and overall quality of life make the state especially attractive, says David Penn, director of Middle

125,629

Total Tennessee automotive employment, including manufacturers and suppliers

Tennessee State University’s Business and Economic Research Center. “Not every state is a crossroads, with multiple interstates, in the middle of the country’s population center,” he says. That makes Tennessee an ideal destination for sophisticated parts suppliers, says Brannan Atkinson, executive director of the Tennessee Automotive Manufacturers Association. “It used to be that manufacturers kept everything in-house. Now, manufacturers will say ‘We don’t need you just to supply the part, we need you to engineer the part,’” he says. Resources including Oak Ridge National Laboratory, the University of Tennessee and the Automotive Research

Consortium make Tennessee attractive for research-and-development activities. Tennessee’s auto-related operations employ nearly 126,000 people and generate a $6.4 billion payroll. Tennessee ranks fourth in passenger car production, fifth in light-vehicle manufacturing and seventh in light-truck production. From assembly to parts production to research on future vehicles and alternative fuels, Tennessee’s auto industry is in high gear. “We ca n see t he complete development of this sector, and Tennessee can play a leadership role in the national discussion of the future of the automotive industry,” Kisber says. – Bill Lewis

Volkswagen Group of America’s Stefan Jacoby, TDECD Commissioner Matt Kisber and Gov. Phil Bredesen cheer VW’s plans to bring auto production to Chattanooga. Left: Nissan’s North American headquarters in Franklin, Tenn. PHOTO BY JEFFREY S. OTTO

$6.42 billion

Total Tennessee automotive employment payroll, including manufacturers and suppliers

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

No. 4

Tennessee’s rank among the states in production of passenger cars and as largest employer of automotive workers

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Point, Click

Grow

Expanding broadbandâ&#x20AC;&#x2122;s reach is a $2.4 billion economic promise

Tennessee is plugged into technology initiatives and innovation. PHOTO BY JEFF ADKINS

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technology

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technology

Scorecard TENNESSEE ON THE INFORMATION SUPERHIGHWAY

65%

of Tennesseans have Internet access at home, 43 percent use broadband.

67%

of Tennessee businesses use the Internet and 55 percent of them use broadband. They tend to have revenues that are higher than the state average.

71%

of Tennesseans have a computer at home.

$30.61

is the average cost of Internet access in the state while dial-up costs an average of $17.82. Average cost of broadband is $36.65.

22%

of Tennesseans use dial-up Internet only at home. 74 percent of Tennesseans say they adopted broadband because dial-up was too slow. Source: Connected Tennessee

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he state is already at work on findings from a study that shows Tennessee will get a $2.4 billion economic boost if more residents gain access to the fast lane of the information superhighway and begin using broadband Internet technology. “There is tremendous, measurable value to every person in Tennessee having broadband,” says Michael Ramage, executive director of Connected Tennessee, a not-for-profit public-private partnership that works with technologyminded businesses, government entities and universities to accelerate technology in the state. Connected Tennessee released the report with Connected Nation Inc., a national nonprofit that

Kisber, chair and co-chair, respectively, the Southern Technology Council, an advisory panel on policy issues for the Southern Growth Policies Board. The council’s mission includes strengthening the South’s economy by fostering technology and innovation. Tennessee’s Technology Development Centers, located in 27 communities across the state, are helping Tennessee achieve the goal of preparing the workforce for high-tech employment. The centers provide training that is accessible to all residents of Tennessee and retrain workers in existing jobs. “Broadband information highways are becoming as important as four-lane highways. To keep the jobs we have

“Broadband information highways are becoming as important as four-lane highways.” STATE SEN. ROY HERRON

helps states expand broadband to mostly rural and underserved communities through mapping, research and program implementation. Expanding the availability and adoption of broadband would create 49,000 jobs, generate more than $1.6 billion in direct income growth, shave roughly $13 million from Tennesseans’ health-care costs and save state residents more than $130 million in gasoline by enabling more of them to work remotely, shop online and engage in other activities on the Internet. The environment would also benefit. With Tennesseans driving less, average annual carbon dioxide emissions would be reduced by more than 66 million pounds, the study says. Expanding broadband availability and adoption is one of Tennessee’s initiatives to foster technology and the good jobs it creates. Gov. Phil Bredesen and Tennessee Department of Economic & Community Development Commissioner Matt

today and to grow jobs tomorrow, our rural areas must have fast and full broadband access,” says State Sen. Roy Herron of West Tennessee. “There is much at stake,” Ramage says of broadband access. “Like roads, railroads and electricity, it’s essential to economic development.” Connected Tennessee is encouraging development of e-community leadership teams in every county to implement technology growth strategies. The goal is to encourage Internet service providers to introduce broadband to new areas and for Tennesseans to adopt it in their homes and businesses. “It’s a chicken-and-egg thing. Which has to come first? We think they have to come at the same time,” says Ramage. “Obviously, most underserved areas are rural areas. But even in the cities, there are many residents and businesses that are underutilizing broadband and all its benefits. It’s every community.” – Bill Lewis

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Broadband Creates Rural Opportunity WORKING TO WIRE THE WORLD Just as the telephone did in the last century, home computers and broadband Internet technology can unlock economic potential in Tennessee’s rural communities and help them compete for 21st century jobs, says Paul Van Hoesen. Reaching that goal, however, requires greater home-computer ownership and availability and adoption of broadband technology, says Van Hoesen, director of cTechnology & cTechnologica Inc., a non-profit organization that helps communities worldwide create mutually beneficial technology initiatives among key stakeholders. “It’s almost like what happened when the telephone showed up. People could communicate so easily. Today, it’s like an entire other universe opens up with broadband,” says Van Hoesen, who is based in Brentwood, Tenn. Equipping all citizens with 21st century technology and knowledge improves education, economic development, government services and health care, all of which are vital to any community, says Van Hoesen. That process is under way in Lauderdale County, which equips all sixth-, seventh- and eighth-graders with a laptop computer but where most children do not have broadband at home. cTechnology is working to improve the broadband infrastructure. It also is working with educators, government officials and business leaders to train the next generation of the workforce and create new economic opportunities. One goal is to create an Entrepreneurial Jumpstart Facility, which would support individuals who obtain online jobs but need a good broadband connection and light office support. “We are breaking new ground in Lauderdale in how to open and equip a Tennessee rural community for 21st century economic opportunity,” says Van Hoesen. Lauderdale County may become the perfect example for other communities to follow, Van Hoesen says. “The ‘buzz’ around Lauderdale is increasing and so is its visibility to the commercial environment,” says Van Hoesen. – Bill Lewis

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Paul Van Hoesen of cTechnology Inc. is working to bring the benefits of broadband connectivity to every community in the world. PHOTO BY TODD BENNETT

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Fuelish Notions

No

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energy

Tennessee leads the way in research on alternative energy, conservation

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rom switchgrass to light switches, Tennessee is positioning itself to be an energy-conservation leader on multiple fronts in the coming years. The state has partnered with the University of Tennessee and Oak Ridge National Laboratory on two major projects that are expected not only to provide cleaner homes and energy sources, but also fuel investment and jobs. The state has put its resources behind the University of Tennessee’s Biofuels Initiative, a program designed to grow and harvest switchgrass for use in “grassoline” production. More than $70 million from the state has been committed to the program over a five-year span. The first crop was harvested in 2007 and a cellulosic ethanol refinery soon will be constructed in Vonore to process the grass. Meanwhile, further testing is being done on the material to examine not only its power capacity, but also its growth cycles and how well it holds up during storage, says Dr. Kelly Tiller, director of external operations for UT’s Office of Bioenergy Programs. “The funding from the state has leveraged our ability to secure additional funds, including a $135 million bioenergy science center grant from the Department of Energy,” Tiller says. “Another reason we’ve been successful from the beginning is the state’s involvement. We involved the farm bureau, the extension service and the whole farming community, so by design we’ve had a lot of input and cooperation with the program’s development.” Jeff Christian’s work focuses on creating a near “zero-energy” home, and he’s putting the technology to the test in Habitat for Humanity houses in Lenoir City, Tenn. PHOTO BY TODD BENNETT

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energy

At Oak Ridge National Laboratory, research on “zeroenergy” homes has moved into the field. The goal for these homes is that they produce as much energy as they consume, hence the zero-energy name. Since 2002, ORNL has been working with Habitat for Humanity in Lenoir City, where five homes were built to begin testing renewable energy and energy-efficient technology, says Jeff Christian, director of the Department of Energy’s Buildings Technology Center at ORNL. “We have worked with the state and with the Tennessee Valley Authority, which have made strong commitments to this research,” Christian says. “We wanted to be the first ones

“Another reason we’ve been successful from the beginning is the state’s involvement.” DR. KELLY TILLER UNIVERSITY OF TENNESSEE

on the block to get some houses up and some measured data, and we’ve done that. The state has been a critical piece of this, providing funding and creating the position of zero-energy house coordinator.” The homes feature wall, window and roof systems that promote high energy efficiency by keeping indoor heat in during winter and outdoor heat out during summer. The homes are fitted with solar panels, with the electricity produced purchased by the TVA’s Green Power Generation Partnership Program. Data collected on energy use, temperature and flow of water and electricity for each house indicates they use 50 to 70 percent less energy than typical new U.S. homes. From those initial five test houses, the groundwork has been laid to enter into a residential development, with three houses being built in mid-2008. Those will be a mix of new construction and retrofitting, and will provide strong data on how far the technology has come in meeting the zeroenergy goal. “It’s a two-year study, and if some of these things we’re doing can be served up to progressive builders, and to homeowners, this could get to be the norm for housing in Tennessee,” Christian says. – Joe Morris

Zero-energy homes feature wall, window and roof systems that promote high energy efficiency. PHOTO BY TODD BENNETT Above: Zero-energy homes are designed with energy-efficient and renewable generating technology, such as solar panels.

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Energy Into Action STATE REFINES COMPREHENSIVE STRATEGY FOR CONSERVATION, NEW-FUEL DEVELOPMENT

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ith abundant natural resources and several nationally recognized research and development centers, Tennessee is in a position to become a national leader on renewable energy, fuel efficiency and conservation. Gov. Phil Bredesen in March 2008 signed an executive order establishing the Governor’s Task Force on Energy Policy, which will craft a strategy to make Tennessee a leader in energy efficiency and conservation, use of alternative fuels and renewable energy sources, and development of cleanenergy technology. The task force’s work will include identifying: • Opportunities for state government to lead by example in efficiency and conservation, with an emphasis on building construction and management and management of its vehicle fleet. • Policies, legislation, regulations or incentives to encourage statewide energy efficiency and conservation in public and private sectors. • Possible public-private collaborations to encourage research and development of clean-energy technology and increase economic development potential in the energy sector. • Strategies for expanding use of alternative fuels and renewable energy sources to support the sustainability of Tennessee’s environment. Ryan Gooch, director of energy policy for the Tennessee Department of Economic & Community Development, lays out some of the state’s programs and strategies:

Q

“Going green” is a catchphrase now, but there’s more to it than just recycling.

What’s the state doing to become a market leader in this industry?

A

Alternate energy and biofuels are energizing sectors that have the capacity to become a whole new (segment) within the state economy. We are already home to the DuPont (renewable resource) plant in Loudon County and we have several more biodiesel plants coming online. But we want to get to the second generation, which is cellulosic ethanol. We project that we can produce 1 billion gallons from in-state crops. So you have Tennessee farmers growing it, Tennessee manufacturers building the plants and producing it and those same producers sending it through state distributors and eventually to state citizens. It’s a full cycle of benefit, where the money stays in the state and further strengthens our economy.

Q

What kind of investment is the state making into alternative-fuel production and other energy programs?

A

We have invested $75 million into cellulosic ethanol, which has positioned us as a national leader in biofuels. We’re ahead of the game, and we’re positioning ourselves the same way around the rest of the renewable-energy field. It’s important that we do that from an economic development standpoint because you have both the economic and the environmental benefits. As we continue to go after these industries, we’ll grow our energy-sector industries, which creates high-skill, high-wage jobs, and it benefits everyone across the state in terms of a cleaner environment.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Ryan Gooch is director of energy policy for the Tennessee Department of Economic & Community Development. PHOTO BY TODD BENNETT

Q

What has the state put into place for existing industries and to attract new ones?

A

Gov. Bredesen’s executive order essentially does two things: It says the state has an obligation to lead by example with our fleet and our buildings, and it brings together a group of experts to craft that energy policy. That plan will look at energy efficiency and conservation from an economic development standpoint, but also make sure that things happen to scale. We can’t just nibble around the edges on this. The majority of our energy produced here is from coal and the governor has said that won’t change in his lifetime, but we can begin to look at hydropower, wind, solar and other ways to produce energy. We’re going to be systematic. We have a chance to make a real difference with this. – Joe Morris

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Alstom is investing more than $200 million for a manufacturing facility in Chattanooga to serve the power-generation industry.

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manufacturing

Powering Up in Chattanooga Alstom makes major investment to catch the surge in generator plant construction

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upplying power-generation plants with critical equipment is the job of French energy company Alstom, a giant in the industry worldwide. To expand its engineering and manufacturing capacity in the United States, Alstom has selected its Chattanooga operations for an investment of more than $200 million for a new manufacturing facility that will create about 350 jobs. Richard Pangrazzi, director of marketing for Alstom Global Power Sales in the U.S. market, says the company made its decision by mapping locations of existing and potential customers. “We put a lot of dots on the map and then discovered that Chattanooga is a central location with the added benefit of having both very good rail and river access, which made it very attractive for us,” he says. “Also, we’ve had a long and successful presence in Chattanooga.” Also factoring into the decision, Pangrazzi says, were the city, county and state incentives. At its existing operation in Chattanooga, Alstom employs about 600 people who manufacture boilers for power plants. (The company also employs about 600 workers at a facility in Knoxville.) The new Chattanooga complex, which will be adjacent to the existing one, will produce steam turbines, gas turbines, generators and machinery needed to upgrade existing power plants. The massive pieces of equipment, some weighing several hundred tons, will be lifted onto nearby railcars or onto barges in the Tennessee River

for delivery to customers. Alstom’s new plant will be capable of producing the same number of nuclear steam turbines as its home factory in Belfort, France, and will increase the company’s worldwide manufacturing capacity by 10 to 15 percent. Alstom, which has operations in 70 countries, invested in 2005 in a turbine factory in Beijing and has some capacity to build steam turbines in Mexico. Neither site, though, produces the company’s Arabelle model specifically for nuclear-power generation. Alstom is banking on a resurgence of nuclear power in the United States. “We feel like the nuclear power industry is going through a revival in the U.S. and we want to be part of this revival,” Pangrazzi says. The company is certainly off to a good start. In November 2007, Alstom was selected by Baltimore-based UniStar Nuclear Energy to supply at least four steam turbine generators for future advanced-design nuclear plants. What’s more, the Nuclear Regulatory Commission, in a March 2008 assessment, says it expects to receive applications for more than 30 new nuclear power units before 2010. Alstom also anticipates a demand for its steam turbines designed for coal-burning power plants. The efficient new turbines reduce a plant’s greenhouse-gas emissions. Pangrazzi anticipates that the first phase of manufacturing will begin in the new Chattanooga facility no later than mid-2010. – Sharon H. Fitzgerald

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

More Insight ALSTOM IN CHATTANOOGA Alstom’s new plant in Chattanooga will manufacture steam turbines, gas turbines, generators and related equipment for use in U.S. power generation facilities Project represents an investment of more than $200 million New facility expected to create 350 permanent jobs Chattanooga selected because of transportation infrastructure, location to customers, incentives Company’s current Chattanooga operation makes boilers for power plants and employs 600 people

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NEW SPEC BUILDING FOR SALE/LEASE • • • •

500-acre certified industrial park setting Regional workforce/training Quadramodal transportation/infrastructure Additional information – www.obioncounty.org

100,000 Sq. Ft. Building Recently Completed • 20-acre site, level

• 6" 4,000 PSI slab with wire reinforcing and fibermesh

• 97,200 sq. ft. manufacturing/warehouse

• Five loading bays with levelers

• 3,000 sq. ft. office space

• One drive-in bay

• Width 360' by 270' depth

• 75 parking spaces

• 80' by 270' exterior bays

• 2000 amp electrical service (expandable)

• 100' by 270' interior bays

• Municipality owned and built

• 30' column spacing

• Located in Northwest Tennessee Regional Industrial Center

• Expandable to 300,000 sq. ft.

• 32' eave height, 39' peak

For more information, contact Jim Cooper at (731) 885-0211 or jcooper@obioncounty.org


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ith Eastman Chemical Co.â&#x20AC;&#x2122;s announcement in 2007 that it will invest $1.3 billion over the next five years in its Kingsport manufacturing facility, Tennesseeâ&#x20AC;&#x2122;s position as a prime locale for chemical operations was again validated. Eastman will spend about $265 million annually on â&#x20AC;&#x153;Project Reinvest,â&#x20AC;? which will bolster the operationâ&#x20AC;&#x2122;s technology, infrastructure, production capabilities and workforce prowess. Eastman is the crown jewel among the 280 or so chemical manufacturers in Tennessee, which employ more than 26,000 and turn out some $13.3 billion in product annually. A manufacturer and marketer of chemicals, fibers and plastics, Eastman is a Fortune 500 company with annual revenue of $6.8 billion. The company employs 10,500, including about 7,000

in Kingsport, where it is headquartered and was founded in 1920. Eastman officials said new tax credits offered by the state, which could be worth $100 million over a decade, swayed the decision to invest in Kingsport versus other locations. A key component of Eastmanâ&#x20AC;&#x2122;s fiveyear investment strategy is a partnership with Northeast State Technical Community College to train a new generation of mechanics, lab analysts and chemical operators. â&#x20AC;&#x153;The goal of our partnership with Northeast State is to have a labor market available to provide businesses and industries in the Northeast Tennessee region with people who have the foundational technical skills for the advanced manufacturing jobs in the region,â&#x20AC;? says Parker Smith, vice president and general manager for Eastman worldwide manufacturing support.

The state is pumping additional dollars into the training initiative with the understanding that other companies may hire workers trained by the program and that best practices of the program will be shared with other state colleges and universities. â&#x20AC;&#x153;At some point in the future, I would like to see a high percentage of our maintenance hires coming to us through this program,â&#x20AC;? Smith says. â&#x20AC;&#x153;My belief is the tech schools are the experts we should be leaning on to do the jobrelated training. This will provide employees who are much farther along in their capabilities, which is going to be critical as large numbers of experienced craftspeople leave due to retirement.â&#x20AC;? Gov. Phil Bredesen says itâ&#x20AC;&#x2122;s his hope that the partnership â&#x20AC;&#x153;will become a model for developing the workforce of the future in our state.â&#x20AC;? â&#x20AC;&#x201C; Sharon H. Fitzgerald

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rom Beale Street in Memphis to the Great Smoky Mountains National Park, Tennessee offers spectacular visitor attractions from one end of the state to the other. While Graceland, Dollywood and the Grand Ole Opry are household names across America, Tennessee is also home to a panoply of lesser-known gems. Attractions such as the Casey Jones Home & Railroad Museum in Jackson, year-round hunting and fishing at Reelfoot Lake State Park in Tiptonville or the historic Natchez Trace Parkway draw thousands of visitors. In 2006, Tennessee tourism generated an estimated $13.4 billion economic impact, up $1 billion for the second straight year and producing $1 billion in state and local sales tax revenues. More than 181,000 people are employed in the industry, generating an annual payroll of $5.1 billion. To keep that momentum and highlight the broad range of the stateâ&#x20AC;&#x2122;s attractions, the Tennessee Department of Tourist Development has launched several initiatives, including comprehensive Web

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site w w w.tnvacation .com , the travel-writer tours a year, with an with more than 400 sales meetings. official Tennessee Vacation Guide and average of 20 journalists in each one. The state also produces five seasonal a co-op advertising program designed The tours focus on specific regions of brochures, as well as the guide, which to help smaller tourism-related the state and generate coverage in a has distribution of more than 550,000 businesses and destinations reach a range of media. copies. larger audience. All this, plus the chance to pair With the Tennessee Sampler, tourism “This collective effort their own funds with impacts the consumer state dollars in the co-op with a strong Tennessee advertising program, message and results in allows smaller attractions c ont i nue d st ate w ide to leverage a much larger industry growth,” says ma rket i ng prog ra m, Dr. Phyllis Qualls-Brooks, Qualls-Brooks says. assistant commissioner. “Tennessee’s rura l Rural tourism figures tourism, which includes prom i nent ly i n t he our quaint small towns department’s efforts. The and unique agritourism state’s tourism partners attractions, is an essential can link their own Web component to the success PHYLLIS QUALLS-BROOKS page to the state’s, which of our industry,” she says. TENNESSEE DEPARTMENT OF TOURIST DEVELOPMENT now has more than 3,000 “The marketing opporindividual pages. The site, tunities offered to these which also features a calendar listing officials and destination representatives important attractions from this more than 800 festivals and events hit the road to promote Tennessee department help to tell the story of throughout the state, had more than tourism in other locales. The 2008 trip some of Tennessee’s most treasured was to Chicago, where more than 50 tourism assets.” 4 million visitors in 2007. In addition, the state hosts four visits were held with local media along – Joe Morris

“Tennessee’s rural tourism, which includes our quaint small towns and unique agritourism attractions, is an essential component to the success of our industry.”

Scorecard TENNESSEE’S TOURISM TRADE

$13.4 billion

Economic impact of tourism in Tennessee in 2006

$5.1 billion

Payroll generated by direct travel spending

181,000

Number of Tennesseans who work in tourism-related businesses in the state

49.8 million

Overnight and day-trip visitors to Tennessee in 2006 Source: Tennessee Department of Tourist Development

The 130-ton replica of engine No. 382 is one of the featured attractions in Casey Jones Village in Jackson.

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STAFF PHOTO

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


TO D D B E N N E T T

tourism

Shoppers stroll charming downtown Franklin, one of 22 communities to receive the state’s Main Street Program certification.

Street Cred MAIN STREET PROGRAM SPRUCES UP COMMUNITIES, LURES VISITORS Communities that participate in the Tennessee Department of Economic & Community Development’s Main Street Program are easy to identify. Clean, clear walkways, good signage, benches, gardens and other cosmetic touches make downtowns in those communities more inviting and attractive. But there’s much more to the program than just that, says Kimberly Nyberg, Main Street Program manager. “The physical improvements are great, but when these communities invest in their downtowns they start seeing a lot of economic development,” Nyberg says. “The people who live there invest in the area, opening shops and businesses, and visitors start to come. Many of our cities and towns have created whole heritage tourism and special events from their Main Street programs, which have greatly increased quality of life for the locals and tourism dollars.”

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

The state has 22 certified Main Street programs, with still more communities involved in the process. Those certified areas are eligible for non-competitive grants from the state, which this year are worth $23,000 for specific programs and staff education. “The key to that program is innovation,” Nyberg says. “We want to see them coming up with programs that display forward thinking, very aggressive projects. And they’re doing it.” Many individual programs have chosen tourism as a focus, she says, and are working on boosting their visitor traffic in a variety of ways. But whatever the project, Main Street is all about creating a community, so local flair is always at the forefront. “We encourage them to become attractions, a true destination,” Nyberg says. “Our downtowns give people a real chance not just to see the character of the community, but also the characters. “That’s what’s so great about our programs — they’re unique to where they are and they allow a community to really build on its strengths, the things that make it different, to be successful. They come up with their own unique story, and then they tell it.” – Joe Morris

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Building

Tennessee is committing resources and expertise to promote economic growth and investment in rural locales. PHOTO BY BRIAN MCCORD

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE


community development

Better

Communities Economic development specialists help rural locales exploit opportunities

P

ickett County, Tennessee, population 4,800, may never be home to a major corporate headquarters. But for the people who like to spend their time in fishing boats on Dale Hollow Lake, that doesn’t matter much. They come from all over the region searching for a life much slower, more relaxing, less hectic. The lake has long been a quiet destination, tucked away on the northern rim of the state. Recently though, several economic development agencies, including the Tennessee Department of Economic & Community Development, put their heads together and came up with the funding for a Welcome Center adjacent to a nearby interstate. Now Dale Hollow Lake and Pickett County are building a reputation as a bona fide tourist destination. “You might not get Toyota or Nissan to put a plant here, but you can capture economic development dollars in the form of people spending money in your county, increasing your tax base,” says Rick Meredith, Tennessee assistant

More Insight

commissioner for community development. Pickett County’s brand of innovation is an example of the broader view Tennessee is taking toward rural economic development. The state has mapped out a new strategy to take the business growth it has enjoyed over the last five years beyond the big cities and burgeoning suburbs, into the small towns most in need of economic activity. “What we try to do is help those rural counties understand their situation,” says Meredith. “We’re saying to them, ‘It’s OK. You can do this. The state’s going to help you.’” The economic development department has carved the 95-county state map into 10 regions and assigned each one to a regional economic development specialist, or REDS, trained in every aspect of rural development, from building an effective Web site to cultivating small business to identifying tourism opportunities. Tennessee has 72 counties designated as rural communities and the REDS work with local leaders in focusing their efforts

BOTTOM LINE ON ROI

At the core of the Rural Opportunity Initiative is a three-part strategy: 1. TAX INCENTIVES. Companies can qualify for job tax credits for locating or expanding in economically disadvantaged counties, which have been organized into three tiers based on per capita income, poverty level and historical unemployment. The credits can be applied against the company’s Tennessee franchise and/or excise tax liability.

2. RURAL OPPORTUNITY FUND, a $12 million venture capital pool of private and public dollars aimed at small and independent businesses in rural areas. 3. ORANGE CARPET TOURS, in which site selectors simulate the process of a community site visit and meet with local economic officials for a candid assessment of the community’s strengths and weaknesses.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Details on the suite of incentives and programs ms that Tennessee offers are available in the Tennessee Tool Kit, a 16-page guide produced by the Tennessee Department ment of Economic & Community Development. A PDF of the guide is available for download at http://tennessee.gov/ecd.

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community development

Matt Kisber, TDECD commissioner, launches the inaugural Orange Carpet Tour in Rockwood, Tenn.

on those areas. Sometimes that means partnering with educators to drive up the county graduation rate. Sometimes that means improving the look of the downtown business district. Sometimes, as in Pickett County’s case, that means shifting the focus from business recruitment to tourism. “All 72 counties have something unique,” Meredith says. The heightened focus on Tennessee’s rural communities comes on the heels of Gov. Phil Bredesen’s Rural Opportunity Initiative, a three-pronged strategy to drive rural investment. “Rural counties, in many instances, don’t have access to (the) resources and don’t know what they need in order to be successful in creating jobs and economic activity,” says Matt Kisber, TDECD commissioner. A major component of the ROI initiative is the Rural Opportunity Fund, a pool of capital for small businesses opening or expanding in rural Tennessee. Across the state, 85 percent of jobs are created by businesses with 25 or fewer employees, and those businesses sometimes may not be able to get backing from commercial lenders. The fund gives small businesses in rural Tennessee the same access to capital available in major urban areas, says Clint Gwin, president of Southeast Community Capital, the fund’s private partner. “Those are the communities that have been most impacted with manufacturing job losses in the last 10 years,” he says. “This gives those communities a way to create new businesses, grow businesses that are already there and increase job creation and wealth creation.” – Michaela Jackson

Recognition for a Job Well Done TENNESSEE EARNS ‘MOST COMPETITIVE STATE’ AWARD FROM MAGAZINE Winning awards based on what you’ve accomplished is good, but winning awards based on where you’re headed is even better. Tennessee has been designated the nation’s most competitive state for economic development, according to the editors of Site Selection magazine, one of the country’s most highly regarded development publications. Although the recognition is appreciated, state leaders say, the focus remains on what earned the award in the first place: more higher-skilled, better-paying jobs. “We’ re honored to be named the nation’s most competitive state for business,” Gov. Phil Bredesen said. “Site Selection’s recognition affirms Tennessee’s well-deserved reputation for a highly competitive business climate and shows we

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have laid the proper foundation for long-term economic growth. We look forward to meeting and exceeding all the expectations that come with this title.” This is the second time Tennessee has won the Competitiveness Award since the award’s creation in 2003. “Tennessee is continuing to prove its business acumen, and heads around the country are turning to see what everyone is talking about,” said Matt Kisber, commissioner of the Tennessee Department of Economic & Community Development. “This award is an honor, but it is also a motivation to work that much harder as we solidify our reputation.” The Competitiveness Award goes to the state ranking highest

in a matrix of qualifiers, including total new or expanded facilities and capital investment per 1 million population, ranking in Site Selection’s most recent business climate survey and number of top 100 metros and small towns in the magazine’s annual rankings. “Tennessee’s leadership has taken important steps to make its business climate competitive,” says Mark Arend, Site Selection editor. “These include reforming the workers’ compensation program, creation of the Jobs Cabinet, retooling incentives and other programs at ECD’s disposal and revamping community development programs to make Tennessee communities more competitive.” – Michaela Jackson

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


P H OTO S B Y TO D D B E N N E T T

Strength in Numbers Three Plateau counties take regional approach to industrial development

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hen opportunity knocks and an automotive manufacturer or other large-scale industrial project needs the perfect location, Morgan, Cumberland and Roane counties will be ready. The counties have joined forces to create Plateau Partnership Park, more than 1,000 acres of prime industrial land along Interstate 40 between Crossville and Harriman. “Economic development is my passion. Plateau Partnership Park is my dream,” says Morgan County Executive Becky Ruppe. “The fact that a number of counties have come together to support this park – it’s got a great location, it’s got access to a very solid workforce and it’s got regional public-sector support – makes it a very attractive place for companies to consider,” says Matt Kisber, Tennessee Department of Economic & Community Development commissioner. Plateau Partnership Park is ready for immediate construction activity, which can save months of development time, says Ruppe. The park offers easy interstate and rail access, and the adjacent Rockwood Airport recently underwent a $2 million expansion. A trained workforce is also assured. Nearby educational institutions include Tennessee Technological University, the University of Tennessee and Roane

State Community College. Morgan, Cumberland and Roane counties hope their regional approach will attract a large manufacturer that will pay above-average wages and boost the region’s economy. But, she says, the partners are “going to be particular” about what company is allowed to locate in the park. “We’re wanting to make a difference for generations to come.” The Tennessee Valley Authority is pursuing a similar strategy of preparedness through its Megasites program. To help communities be ready for potential automotive and large industrial growth, a TVA consultant developed a certification process for large industrial properties. (Tennessee has certified megasites in Clarksville, Haywood County, and Chattanooga, where Volkswagen will build an assembly plant.) Plateau Partnership Park is not a certified Megasite, but Ruppe says the idea behind it is the same. Tennessee is well situated for attracting automotive manufacturers, says John Bradley, TVA senior vice president of economic development. “Tennessee’s central location, access to market for products, extensive transportation network and positive business climate are among the state’s attractive attributes,” he says. – Bill Lewis

Becky Ruppe, Morgan County executive, stands at Plateau Partnership Park, where 1,000 acres are ready for development.

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broadcasting

Channeling

Tennessee

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Millions dial in to popular networks that make their home in the state

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ennessee is a channel-surferâ&#x20AC;&#x2122;s paradise, thanks to several popular Volunteer State-based networks available to millions of households via broadcast, cable and satellite. When the time came for Knoxville-based Scripps Networks to grow, President John Lansing says the company did its due diligence and decided East Tennessee was still the place to be. Scripps Networks has announced a $30 million expansion of its West Knoxville headquarters, which should be completed

Tennessee is home to several popular television channels, including Knoxville-based Scripps Networksâ&#x20AC;&#x2122; HGTV, Food Network and Great American Country, whose studios are in downtown Nashville. PHOTOS BY TODD BENNETT

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broadcasting

More Insight TUNED INTO TENNESSEE Country Music Television: The unit of MTV Networks is based in Nashville. DIY Network: Part of Knoxville-based Scripps Networks. Fine Living TV Network: Part of Knoxville-based Scripps Networks. Food Network: Part of Knoxville-based Scripps Networks. Great American County: Based in Nashville and part of Scripps Network. Exclusive television home of the Grand Ole Opry. HGTV: Part of Knoxville-based Scripps Networks. Considered a pioneer in originating home and lifestyle programming. Jewelry Television. Based in Knoxville, it is one of the leading retailers of fine jewelry in the United States. RFD-TV: Nashvillebased channel “dedicated to serving the needs and interests of rural America and agriculture.” Documentary Channel: Nashville-based broadcaster of independent documentary films.

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Knoxville-based Scripps Networks’ Great American Country channel, with operations in Nashville, broadcasts the Grand Ole Opry and other programming geared to enthusiasts of country music.

by 2010. “You don’t have to be in New York or Patrick Gottsch, who founded the company in Los Angeles,” Lansing says. 2000. With about 900 Knoxville employees, Scripps As its name implies, RFD-TV targets a rural Networks is the dominant television company market, with programming that ranges from in the home, food and lifestyle categories with farming to livestock, country cooking to cowboys, brand names that include HGTV, Food Network, horses to tractor pulls, quilting to country music. DIY Network, Fine Living and Great American “I’ve read every e-mail that’s ever come into Country, which has its RFD-TV. … One thing base in Nashville. that came through loud Lansing credits the and clear was how pasorganization’s success sionate people were about to the region’s workmissing The Nashville force, which he calls Network,” Gottsch says “entrepreneurial, highly of the cable mainstay JOHN LANSING educated, energized whose corporate parent SCRIPPS NETWORK and creative.” Luring changed its programming employees from outside format and its name. the area isn’t a problem, either. Thus, RFD-TV reruns many of the old TNN “We have found that access to the education favorites and has revived popular shows such as system and the natural beauty of East Tennessee “Crook & Chase” and “The Ralph Emery Show.” all work in our favor. It’s a competitive advantage,” RFD-TV employs about 50 people, a number he says. Gottsch expects to rise to 150 by the end of 2008. While not born in Tennessee, RFD-TV took The company also boasts a magazine and a theater off when the company moved from Dallas to in Branson, Mo., and plans to launch satelliteNashville, acknowledges RFD-TV President radio and international television programming.

“You don’t have to be in New York or Los Angeles.”

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


P H OTO S B Y TO D D B E N N E T T

Also in Knoxville is Jewelry Television, a jewelry and gemstones shopping network with about $500 million in revenues in 2007. Founded in 1993 in Greeneville, Tenn., as the America’s Collectibles Network, the company honed its product offerings down to just jewelry after about a decade. Jewelry TV employs 2,000 people in its Knoxville headquarters and another 100 around the world “sourcing” gemstones and jewelry, says Randy Sadler, vice president of marketing. “One of the great things about global sourcing is that it allows us to provide fantastic prices for our customers and cut out a lot of steps.” Many of Jewelry TV’s workers staff a sprawling warehousing and shipping operation, as well as a 300-seat call center that never closes. Knoxville is “a fantastic place to build a workforce,” Sadler says. “There is a large base of people with a good skill set, a willingness to work hard and a lot of integrity.” – Sharon H. Fitzgerald

Knoxville-based Scripps Networks’ holdings include the Great American Country channel, available in 46 million homes, as well as several home, food and lifestyle channels.

The Land of Rivers, Lakes, Mountains and Valleys A Good Place to Live, Work, Shop and Play Located on the Tennessee River Connected to Three Major Interstates (I-24, I-40 and I-75) by a Four-lane Highway (Hwy. 27) Major Railroad Through County Award-winning Tennessee Airport of the Year, Featuring 5,000' x 100' Runway, with Low Lead Jet Fuel Available Land Available in Dayton and Spring City Industrial Parks

Cities of Dayton, Spring City and Graysville

Rhea County

Rhea Economic & Tourism Council, Inc. (423) 775-6171 107 Main Street • Dayton, TN 37321 www.rheacountyetc.com

A Certified Three-Star Community Ad Sponsored by:

Volunteer Energy Cooperative 18359 Hwy. 58 N. • P.O. Box 277 • Decatur, TN 37322 P HONE: (423) 334-1020 • FAX : (423) 334-7002 • www.vec.org

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Homegrown

Goodness

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agriculture

Eat what the locals eat with help of Pick Tennessee Products

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all it a virtual farmer’s market: a place in cyberspace where farmers and consumers connect. That’s the idea behind Pick Tennessee Products, a Web site frequented by everyone from city slickers in search of organic produce to moms looking for on-the-farm activities to do with their kids. “Pick Tennessee Products was started in the ’90s to help build farm income, and it’s evolved to be a direct link between farmers and consumers,” says Dan Strasser, director of market development for the Tennessee Department of Agriculture. “People can use it to find anything ag-related – hay for their horses, wines and cheeses made in Tennessee, gift baskets with jams and jellies, farm-fresh meats and produce, and enter tainment on the farm. You can go pick a pumpkin, go through a corn maze, find a bed-and-breakfast or go on a horse ride,” he says. Sponsored by the Tennessee Department of Agriculture, the Web site provides a service for both farmers and consumers. “It helps producers tremendously because it gives them a Web presence even if they don’t have a Web site of their own,” Strasser says. “And consumers use it to find the fresh produce and value-added products they want.” Consumers even find things they don’t expect on the Web site. Awardwinning, world-class caviar made in Tennessee is just one example.

“People are surprised at the variety of goods and services on the site,” Strasser says. “You can go out to a salmon grower’s property and catch salmon and trout. And there are 30 wineries in Tennessee. A lot of farms open up to the public, and more and more people are interested in coming out to visit rural Tennessee.” The Web site is also a resource for finding Christmas tree farms, finding dates for Tennessee fairs and festivals, locating farmers markets across the state and buying flowers, ornamental trees and shrubs. In addition to fruits and vegetables, consumers can find food products such as aged country ham, sorghum syrup, buttermilk cheese, handmade chocolates, savory cheesecakes and gift baskets stuffed with Tennessee-made goodies. And the site’s online “Taste of Tennessee” store makes gift giving easy – you can order and send gifts at the same time using a credit card. Pick Tennessee Products doesn’t stop with just providing the foods people want. It also offers more than 50 Tennessee recipes that incorporate produce and other goods available on the Web site. The recipes include everything from strawberry butter and watermelon salsa to squash soup and cider-glazed shrimp. For more information, visit www. picktnproducts.org. – Jessica Mozo

Homegrown items can be found at the Pick Tennessee Products Web site.

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economic profile

ECONOMIC PROFILE BUSINESS CLIMATE

WORKFORCE DEVELOPMENT Workforce development and career services receive special attention in Tennessee. Thirteen Local Workforce Investment Areas, administered by local boards, offer customized, comprehensive services for employers and job seekers. Specific information also is available through the state’s online information center, The Source: tennessee.gov/labor-wfd/source. Additionally, Tennessee Career Centers in each cluster provide free services including workshops, access to resources and office equipment. Seventyfive percent of the state’s population is located within 25 miles of a full-service Career Center. To locate a Career Center, visit tennessee.gov/labor-wfd/cc.

Tennessee offers a wide array of advantages to businesses considering a startup or relocation within its borders. The following section offers a brief statistical look at the state, from transportation resources to job training opportunities.

LOW COSTS Tennessee’s low cost of doing business is the direct result of the following business advantages and incentives: Right-to-work state, Recent workers’ compensation reform, One of the lowest overall utility costs in the nation, Consistently one of the lowest per capita taxed states in the nation, No state sales tax on purchases, installation and repairs of qualified industrial machinery, No sales tax on pollution control equipment, No sales tax on raw material,

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

No state property tax, No property tax on work in progress or finished product inventories, Investment tax credit of 1 percent, Franchise and excise tax jobs credit, Attractive depreciation schedules, Infrastructure and training grants up to $750,000, Reduced sales tax on energy fuel and water for qualified manufacturers, “Double weighting” of Tennessee sales for franchise and excise taxes, More incentives may be available

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The heart of Tennessee is a powerful place to be. Great schools. Lots to see and do. Wonderful communities. Not surprising, it’s the state’s fastest-growing area. It’s also not surprising to see a great electric provider behind it all, featuring some of the nation’s cheapest, most reliable power.

Williamson County

Rutherford County A powerful pl ace to live a nd d do business ...

Wilson County Middle Tennessee Electr Electric Membership Corpor ation The nation’s No. 1 distributor of electricity among electric cooperatives Rutherford County Jeff Brockette (615) 494-1547 jbrockette@mtemc.com

Williamson County Chuck Barber (615) 494-1548 cbarber@mtemc.com www.mtemc.com

Wilson and Cannon Counties Andy Duncan (615) 494-1546 aduncan@mtemc.com


economic profile YEAR-TO-YEAR JOB CHANGES BY INDUSTRY SECTOR 2005-06

HIGH-TECH CONNECTIONS Industries in Tennessee can receive high-level support from major research and technology centers, including: University of Tennessee SimCenter at Chattanooga University of Memphis FedEx Institute of Technology Vanderbilt University Medical Center The Tennessee Manufacturing Extension Partnership also assists manufacturing firms by providing access to engineers and scientists at NASA-Marshall Space Flight Center in nearby Huntsville, Ala., and public and private universities and colleges.

INTERNATIONAL IMPACT Tennessee has entered the international job market in a major way, with growth fueled by the substantial automotive industry within the state.





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 MANUFACTURING

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EDUCATIONAL & HEALTH SERVICES

CONSTRUCTION

FINANCIAL ACTIVITIES

LEISURE & HOSPITALITY

PROFESSIONAL & BUSINESS SERVICES

GOVERNMENT

TRADE, TRANSPORTATION & UTILITIES

Source: Tennessee Department of Labor, June 2007

More than one-third of all workers in Tennessee depend on exports for their jobs.

NON-AGRICULTURAL EMPLOYMENT BY INDUSTRY SECTOR

More than 5,300 companies export from Tennessee locations. Foreign investment in the state has resulted in almost 134,000 jobs.

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Tennesseeâ&#x20AC;&#x2122;s export shipments grew 73 percent from 2003 to 2007. Seventy-one Canada-based satellite companies employ 9,319 Tennesseans and represent a total investment of approximately $1.4 billion. Tennesseeâ&#x20AC;&#x2122;s 2007 exports to Canada totaled more than $6.7 billion, making Canada the largest consumer of Tennessee exports. To date, 165 Japanese companies employ approximately 41,168 Tennesseans, with investments of more than $11 billion. These investments make Japan the largest foreign investor nation in Tennessee.

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Source: U.S. Chamber of Commerce, Tennessee Department of Economic & Community Development

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

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Source: Tennessee Department of Labor, June 2007

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economic profile ELECTRIC POWER Tennessee offers an abundant supply of affordable electric

For seven years in a row, TVA has delivered power to customers with 99.999 percent reliability.

nation – about 14-26 percent

Technical, financial and consulting services are available to help companies locate and find business solutions that generate savings and create profits.

below the national average.

TVA’s Megasites program

power, available through the Tennessee Valley Authority. Electric rates in Tennessee are among the lowest in the

features community sites precertified for large automotive plants or other specifically identified industries.

GAS PIPELINES More than 35,000 miles of natural gas pipelines and distribution lines crisscross the entire state.

Local Workforce Investment Areas Source: Tennessee Department of Labor and Workforce Development Tennessee’s counties are grouped into 13 clusters with similar workforce needs.

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RAIL 20 short-line railroads operating on 829 miles of rail Three major railroads cross parts of the state: NorfolkSouthern, CSX, IllinoisCentral/ Canadian National Six major rail lines operating on 2,340 miles of rail Memphis is the thirdlargest rail center in the U.S.

WATERWAYS 1,062 miles of navigable waterways Tennessee-Tombigbee Waterway provides direct access to Gulf of Mexico harbors and international markets Access to deep-water ports on the Gulf of Mexico (TennesseeTombigbee Waterway) and the East Coast Memphis is the fourth-largest inland port in the U.S.

PUBLIC TRANSIT 29 transit systems (bus, van and light rail) serve 95 counties

Ranked in the Top 10 Metros of Best Places for Business and Careers in the Country – Forbes Magazine, May 2006 and 2007

A TOP-RATED STATE Tennessee continues to stand at the top of the charts when it comes to economic development. Included in its growing list of recognitions are the following ratings: Tennessee named winner of Site Selection magazine’s 2007 Competitiveness Award, May 2008

AVAILABLE BUILDING:

Site Selection magazine ranked Tennessee third in its annual Governor’s Cup, March 2008

• Located on 8.9 acres

Tennessee’s economy is ranked fifth-best in the country by the American Legislative Exchange Council, March 2008

• Four dock doors

Site Selection magazine ranked Tennessee sixth in business climate, November 2007 Tennessee jumps seven spots on the Forbes Best States for

• Reinforced concrete floors

• Three drive-in dock doors • Three bridge cranes • All utilities on-site • Located 2.2 miles from Interstate 26

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Snap-On tools building – 64,550 sq. ft. Other buildings available up to 296,000 sq. ft.

Johnson City/Jonesborough and Washington County Economic Development Board 603 E. Market St., Ste. 200 Johnson City, TN 37601 (423) 975-2380 www.jcedb.org

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Business list, tying for the most improved, biggest mover, July 2007 Forbes ranks Knoxville No. 5 and Nashville No. 10 on the Best Places for Business and Careers list, April 2007 Expansion Management named four Tennessee cities to its ninth annual “America’s Hottest Cities” list: Chattanooga, Knoxville, Memphis and Nashville, February 2007 Silver Shovel Award given by Area Development magazine for successful job creation and retention efforts, July 2006

AIRPORTS All six commercial airports have invested heavily in new cargo-handling infrastructure. Memphis International is a central hub for FedEx – and is the No. 1 transporter of air cargo in the world. 75 publicly owned, general aviation airports 39 Automated Weather Observing Stations

HIGHWAYS AND BRIDGES Seven different interstates Eight interstate spurs around major metropolitan areas 87,259 miles of roadway 1,074 miles of interstate 13,752 miles of state roads 8,114 state-owned bridges 13,752 locally owned bridges 19 interstate rest areas 13 interstate welcome centers 9 truck weigh stations

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Take a Look at Lewisburg! www.marshallchamber.org

184 Acres of Prime Industrial Property located on Hwy. 373 in Lewisburg, Tennessee Home to: US Tank & Cryogenics, Autom Church Supply

Seven Local Offices with 3,000 Miles of Distribution Pipeline Fueling the Growth of 20 Tennessee Counties

A Tennessee Three-Star Community

Contact: Terry Wallace Community Development Director 131 E. Church St. Lewisburg, TN 37091 (931) 359-1544 Cell: (931) 993-7512 Fax: (931) 359-7055 E-mail: twallace@ctyoflew.com

Lewisburg Business Park • 7/10 of a mile from I-65 (Exit 32) • 48 miles south of Nashville, TN • 54 miles north of Huntsville, AL

• Infrastructure developed on-site – water, sewer, gas, roads and broadband

• 22 minutes from Spring Hill Manufacturing (GM)

• Phase one environmental complete

• 65 minutes from Nissan Plant

• PILOT program available

The mission of Middle Tennessee Natural Gas Utility District is to improve the welfare of the communities it serves by providing quality Natural Gas service at competitive rates in a safe, environmentally clean and efficient manner.

Headquarters: 1030 W. Broad St. Smithville, TN 37166 Phone: (615) 597-4300 Fax: (615) 597-6331 www.mtng.com

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economic profile DISTRIBUTION OF MANUFACTURING JOBS

FRANKLIN COUNTY FURNITURE 5%

BEVERAGE & TOBACCO PRDTS • 1%

FOOD 9%

APPAREL 2% NONMETALLIC MINERAL PRDTS 4%

TRANSPORTATION EQUIPMENT • 16%

It’s All Right Here!

TEXTILE MILLS & PRDTS • 3% ELECTRICAL EQUIPMENT & APPLIANCES • 6%

CHEMICALS 7%

PLASTICS & RUBBER PRDTS 8%

COMPUTER & ELECTRONIC PRDTS • 3%

MA

University of the South PRINTING & PUBLISHING • 5%

MACHINERY 9%

TEXTILE PRODUCT MILLS • 1% FABRICATED METALS • 11% PRIMARY METALS 3%

WOOD PRODUCTS 4%

PLASTICS & RUBBER PRDTS 7%

New High School Percentages add up to more than 100% because of rounding. Source: Tennessee Department of Labor and Workforce Development, June 2007

PER-CAPITA INCOME TENNESSEE VS. SOUTHEAST REGION & UNITED STATES

World-Class Industry

$40,000 $35,000

Bear Trace Golf $30,000 $25,000 $20,000

Beautiful Lakes

$15,000

Top Tier

$10,000

See for Yourself

$5,000

0

3 Star

1999

2000

Tennessee

2001

2002

2003

2004 2005 2006

Southeast Region

United States

2007

Chamber of Commerce Phone: (931) 967-6788 www.franklincountychamber.com Industrial Development Board Phone: (931) 967-5319 www.fcidb-tn.org Franklin County Government Phone: (931) 967-2905

Source: U.S. Department of Commerce, BEA

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economic profile

TENNESSEE TOP TEN PROJECTS OF 2007 EASTMAN CHEMICAL CO. What they do: Manufacture and market chemicals, fibers and plastics Where: Kingsport, Tenn. Type of project: Retention and possible expansion Value: $1.3 billion investment Scope of project: Retention of 7,000 existing jobs and potential creation of new jobs. Eastman Chemical will upgrade technology, infrastructure and production capabilities at its Kingsport manufacturing facility. The project will also initiate a unique partnership between Eastman and Northeast State Technical Community College to develop curricula and implement training programs for a new generation of mechanics, lab analysts and chemical operators. “The state is working with Eastman and a local community

college to develop a unique training curriculum, developing an alignment between higher education and industry that could become a model statewide.” – Tennessee Department of Economic & Community Development

ALSTOM POWER What they do: Manufacturer of steam and gas turbines Where: Chattanooga, Tenn. Type of project: Expansion Value: $280 million investment Scope of project: Creates 360 jobs. TDEDC, Tennessee Valley Authority and Chattanooga Area Chamber of Commerce participated. “Alstom’s successful experience in Tennessee gave them the confidence to bring an additional line of business to the Chattanooga area.” – TDEDC

ETHANOL GRAIN PROCESSORS LLP What they do: Production facility for ethanol Where: Obion, Tenn.

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Type of project: New Value: $167 million investment Scope of project: Creates 50 jobs. The ethanol plant is expected to process up to 36 million bushels of corn into 100 million gallons of denatured ethanol and 320,000 tons of dried distillers grains. TDEDC, TVA, Obion County Joint Economic Development Council and USDA Rural Development participated. “Coupled with Tennessee’s $70 million investment in new ethanol technologies in East Tennessee, this project takes advantage of Tennessee’s central location and new port facilities along the Mississippi River.” – TDEDC

THYSSENKRUPP WAUPACA INC. What they do: Manufacture gray and ductile iron castings for automobiles Where: Etowah,Tenn. Type of project: Expansion Value: $162 million investment

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economic profile Scope of project: Creates 100 jobs and doubles size of its current facility, which opened in 2001. TDEDC and TVA participated. “The company was convinced Tennessee’s commitment to upgrading the skills of the local workforce plus the investment in new technology would allow for productivity gains, which made the project competitive versus migration to a low-cost environment.” – TDEDC

NIKE INC. What they do: Distribution center Where: Memphis Type of project: Expansion Value: $107 million investment Scope of project: Creates 244 jobs. Nike acquired a 125-acre parcel in Memphis, where it is building a 1 million-squarefoot distribution center. A comprehensive business analysis projected cost efficiencies totaling more than $200 million, reduced shipping times and increased service capabilities. TDEDC, TVA, Memphis Area Regional Chamber of Commerce and Belz Enterprises participated. “Tennessee showed Nike how it could reach 75 percent of its customer base in the United States by ground within 24 hours. Proximity to the world’s busiest freight airport also gave Nike global distribution capabilities.” – TDEDC

industries. USEC will also employ tax credits to offset an investment in new technologies.” – TDEDC

VIFAN USA INC. What they do: Manufacture clear and metalized biaxially oriented polypropylene Where: Morristown, Tenn. Type of project: Expansion Value: $72 million investment Scope of project: Creates 55 jobs. TDEDC, TVA, Morristown Area Chamber of Commerce and Morristown Utility Systems participated. “This project utilizes a state tax

credit for investment in new industrial machinery to create jobs in an economically distressed community.” – TDEDC

AISIN AUTOMOTIVE CASTING TENNESSEE INC. What they do: Manufacture automotive engine components Where: Clinton, Tenn. Type of project: Expansion Value: $67 million investment Scope of project: Creates 160 jobs. The Clinton operation is a full-process, die-casting facility that includes casting, machining and assembly to produce

USEC INC. What they do: Manufacture centrifuges Where: Oak Ridge, Tenn. Type of project: New Value: $106 million investment Scope of project: Creates 450 jobs. TDEDC, TVA, City of Oak Ridge, East Tennessee Economic Development Agency and Anderson County Economic Development Association participated. “Utilizes state job-training dollars and infrastructure development funds to enhance its capability to manufacture uranium centrifuges for the commercial energy and defense

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Visit Our Advertisers AT&T www.att.com

Middle Tennessee Electric Membership Corporation www.mtemc.com

Belz Enterprises www.belz.com Blount Partnership www.blountchamber.com

Middle Tennessee Natural Gas www.mtng.com Monroe County Economic Development www.monroegovernment.org

BlueCross BlueShield of Tennessee www.bcbst.com Chattanooga Area Chamber of Commerce www.chattanoogachamber.com City of Brownsville & Haywood County www.haywoodcountybrownsville.com

Nashville Area Chamber of Commerce www.nashvilleareainfo.com Networks Sullivan www.networkstn.com Northeast Tennessee Valley Regional Industrial Development Authority www.netvaly.org

City of Franklin www.franklin-gov.com City of Hohenwald www.lewisedc.org City of Lewisburg www.marshallchamber.org Clarksville-Montgomery County www.clarksville.tn.us

Peerless Pinnacle Company www.bizbuysell.com/ppc.htm

Cookeville Area Chamber of Commerce www.cookevillechamber.com

Pulaski-Giles County Economic Development Commission www.gilescountyedc.com

Dyersburg/Dyer County Chamber of Commerce http://ddcc.dyercountychamber.com

Rhea County Economic & Tourism Council www.rheacountyetc.com

Gallatin Economic Development Agency www.gallatintn-eda.com Hickman County Economic & Community Development www.hickmanco.com/vision21 Innovation Valley Inc. www.innovationvalleyinc.com Johnson City Economic Development Board www.jcedb.org Lauderdale Chamber/Economic & Community Development www.lauderdalecountytn.org Memphis Area Chamber www.memphisdelivers.com Metropolitan Nashville Airport Authority www.nashintl.com

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Obion County Joint Economic Development Council www.obioncounty.org

Cleveland Bradley Chamber of Commerce www.clevelandchamber.com

Franklin County Chamber of Commerce www.franklincountychamber.com

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Oak Ridge National Laboratory www.ornl.gov

Rutherford County Chamber of Commerce www.rutherfordchamber.org Southeast Industrial Development Association www.seida.info T.W. Frierson Inc. www.twfrierson.com Tellico Reservoir Development Agency www.tellico.com The Regional Alliance for Economic Development www.alliancetnva.com The Roane Alliance www.roanealliance.org Williamson County www.williamsoncounty-tn.gov/ economicdevelopment

TENNESSEE ECONOMIC DEVELOPMENT GUIDE


economic profile Type of project: New Value: $54 million investment Scope of project: Creates 665 jobs. TDEDC, TVA, City of Franklin, Williamson County and the Nashville Area Chamber of Commerce participated. â&#x20AC;&#x153;Verizon became the 30th new corporate headquarters to locate in Tennessee in the last four years. The project shows the effectiveness of a newly developed Headquarters Tax Credit adopted by the state four years ago. Franklin and Williamson County also offered a property tax abatement.â&#x20AC;? â&#x20AC;&#x201C; TDEDC

functional engine components, such as water pumps, oil pumps and pistons, that will be used in auto assembly. TDEDC, TVA, East Tennessee Economic Development Agency and Anderson County Economic Development Association participated. â&#x20AC;&#x153;Tennesseeâ&#x20AC;&#x2122;s ongoing commitment to worker training and skill upgrades gave Aisin the confidence to double the size of its facilities.â&#x20AC;? â&#x20AC;&#x201C; TDEDC

VERIZON WIRELESS What they do: Provider of wireless communications Where: Franklin, Tenn.

AIRPORTS â&#x20AC;&#x201C; LONGEST RUNWAY LENGTH Source: Federal Aviation Administration ;S[^VWa7\bS`\ObW]\OZ;S[^VWa

 

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HYDROSERRE TENNESSEE What they do: Manufacture food products via hydroponic technology Where: Livingston, Tenn. Type of project: New Value: $40 million investment Scope of project: Creates 291 jobs. TDEDC, TVA, Overton County/Livingston Chamber of Commerce and Upper Cumberland Electric Membership Corp. participated. â&#x20AC;&#x153;The moderate climate and strong agricultural work ethic of people in Overton County were of particular interest to Hydroserre.â&#x20AC;? â&#x20AC;&#x201C; TDEDC

FOR MORE INFORMATION Tennessee Department of Economic and Community Development www.tnecd.gov TVA Economic Development www.tvaed.com www.tvasites.com

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For tips and to compare cleaner, more efďŹ cient vehicles, visit

SOURCES: www.tennessee.gov/ www.labor-wfd/source

MONROE COUNTY ECONOMIC DEVELOPMENT Shane Burris, Director 103 College St., Ste. 6 â&#x20AC;˘ JPK Building Madisonville, TN 37354 (423) 442-3652 â&#x20AC;˘ Fax: (423) 442-7933 E-mail: shaneb@monroegovernment.org www.monroeeconomicdevelopment.com

www.epa.gov/greenvehicles.

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Tennessee Economic Development Guide: 2008-09  

Tennessee offers a wide array of advantages to businesses considering a startup or relocation within its borders. The following section offe...

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